The EU is going to Ukraine empty-handed ― thanks to Hungary

BRUSSELS ― When European Commission and Council Presidents Ursula von der Leyen and António Costa arrive in Kyiv for a day of remembrance on Tuesday, they will have little to offer other than condolences.

Four years to the day since Russia’s full-scale invasion of Ukraine began, the EU hoped to bring some comfort in the form of fresh sanctions against Moscow and a €90 billion loan to Kyiv.

Hungary has stopped that happening.

After a brutally cold winter in Ukraine, months of supposed peace talks that have produced little more than political theater, and with Russia showing no sign of stopping its barrage of attacks, the EU had been confident it could finally bring Kyiv some concrete help.

But the carefully choreographed support was spoiled when Hungarian Foreign Minister Péter Szijjártó announced his country would block Europe’s 20th round of Russian sanctions because of an oil dispute Budapest has with Ukraine, ratcheting up the two countries’ long-simmering feud.

He also threatened to use Budapest’s veto to hold back a crucial €90 billion loan that EU leaders agreed in December to finance Ukraine’s defense against Russian forces.

Hungarian Prime Minister Viktor Orbán “demonizes Ukraine for political gain inside Hungary,” Ukrainian Foreign Minister Andrii Sybiha told POLITICO. “We demand Budapest stop dragging Ukraine into Hungary’s domestic politics.” Hungary holds a general election in April, in which Orbán’s ruling Fidesz party is lagging behind in the polls.

With the EU’s foreign affairs chiefs gathered in Brussels on Monday for a meeting intended to approve the sanctions, they also couldn’t contain their fury.

Hungary’s move marked a “new low” for Orbán, Sweden’s Europe Minister Jessica Rosencrantz told POLITICO. “We’ve seen in previous decisions that Hungary is not acting in a way of sincere cooperation” with other EU states. “That should send an alarm to many of us. We’re seeing what Orbán is doing: he’s using Ukraine as a punching bag.”

German Foreign Minister Johann Wadephul said he was “astounded about the Hungarian position,” while his Polish counterpart, Radosław Sikorski, said he “expected a much greater feeling of solidarity from Hungary for Ukraine.”

All about oil

The crux of Hungary’s row is the Druzhba pipeline, which stretches 4,000 kilometers from eastern Russia to Central Europe, providing vast quantities of oil for Hungary and Slovakia. Both have exemptions from EU sanctions on imports of Russian refined oil.

The pipeline has been offline since Jan. 27, when Ukrainian authorities said a Russian strike damaged it. But Budapest and Bratislava aren’t buying that, accusing Ukraine of intentionally keeping the pipeline inoperative.

Ukrainian Foreign Minister Andrii Sybiha, who said Hungary and Slovakia should “send their concerns to the Kremlin.” | Viktor Kovalchuk/Global Images Ukraine via Getty Images

Szijjártó went as far as to claim Kyiv was trying to orchestrate an energy crisis in Hungary ahead of the country’s elections.

“There is no technical or operational reason preventing the restart of oil transit,” Szijjártó said. “It’s therefore obvious that Ukraine’s decision is purely political, an attempt to pressure Hungary in coordination with Brussels and the Hungarian opposition. We will not give in to blackmail.”

Kyiv and its allies have long called for European countries to wean off Russian oil, with Moscow’s energy profits filling its war chest. Most have done so — with the exception of Hungary and Slovakia.

As the war of words continued, Ukraine’s Sybiha said Hungary and Slovakia should “send their concerns to the Kremlin.”

Russian oil accounted for 92 percent of Budapest’s energy imports last year, according to the Center for the Study of Democracy, a European policy institute. Orbán has frequently argued his country has no viable alternatives to Russian imports.

Funding war

Budapest last week called on Croatia to supply it with seaborne shipments of Russian oil via its Adria pipeline in order to replace the supplies lost as a result of the Druzhba closure. Croatia has long offered to step in to help Hungary with its energy needs, arguing it has more than enough capacity, but Zagreb has refused to transport Hungary’s purchases of Russian oil.

“A barrel bought from Russia may appear cheaper to some countries, but helps fund war and attacks on Ukrainian people,” Croatian Energy Minister Ante Šušnjar said last week.

Hungary, which once claimed Croatia didn’t have the capacity to meet Budapest’s oil needs, was shifting the goal posts by demanding Zagreb transport Russian oil, a European diplomat with knowledge of the conversations told POLITICO, granted anonymity to speak freely. “They are entangling themselves more and more in their lies,” the diplomat said.

Orbán had agreed to Ukraine’s wartime financial lifeline on the basis that Hungary, alongside Czechia and Slovakia, would be exempt from paying down the EU loan.

But the dispute over the Druzhba pipeline has “forced me to reconsider my position,” Orbán wrote on Monday in a letter to Costa, seen by POLITICO, again accusing Ukraine of slow walking repairs. Hungary can block the €90 billion loan because one of the three pieces of legislation underpinning the financial aid also requires EU unanimity to expand the cash buffer of the EU’s long-term budget to issue the loan.

Lithuanian Foreign Minister Kęstutis Budrys said he was “really upset and frustrated,” adding Hungary’s move not only calls the EU’s support for Ukraine into question but its unity and ability to act decisively when major decisions are constrained by unanimity.

“I hope that Europe can deliver,” he said. And “that tomorrow it won’t be the situation when we will be saying, ‘We are sorry, 20th package is not there. We are sorry, €90 billion maybe next month, maybe somewhere in the future.’”

Nick Vinocur, Ben Munster and Bjarke Smith-Meyer contributed to this report.